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Gold Rally Boosts Indian Household Wealth by Rs 117 Lakh Crore in 2025

Indian household wealth increased by nearly Rs 117 lakh crore in 2025, primarily fueled by a sharp rally in gold prices, marking the highest such wealth gain in 25 years. The year saw Indian equity markets consolidate and underperform global peers significantly, with the Nifty posting its worst relative performance in nearly three decades. While gold and certain global assets shone, oil, the US dollar, and Bitcoin were among the worst performers. The report advises first-time investors to consider hybrid funds to manage volatility through a mix of asset classes.

Key Points: Gold Rally Adds Rs 117 Lakh Crore to Indian Household Wealth

  • Historic gold price surge
  • Nifty's worst relative performance in decades
  • Wealth effect boosts gold loans
  • Large-caps offer better value than small-caps
  • Hybrid funds advised for new investors
2 min read

Indian households add Rs 117 lakh crore in 2025 as gold rally boosts wealth

Indian household wealth surged by Rs 117 lakh crore in 2025, driven by a historic gold price rally, creating a strong spending buffer.

"This was the highest wealth gain from gold price appreciation in the last 25 years. - HDFC Mutual Fund Yearbook 2026"

New Delhi, Jan 17

Indian households saw a massive jump in their wealth in 2025, driven mainly by a sharp rise in gold prices, a new report has said.

The data compiled by HDFC Mutual Fund Yearbook 2026 said household wealth increased by nearly Rs 117 lakh crore, or about $1.3 trillion, during the calendar year, creating a strong spending buffer for families.

The fund house said this was the highest wealth gain from gold price appreciation in the last 25 years.

Gold prices rose by around Rs 57,000 per 10 grams in 2025 till December 15, after already increasing by Rs 14,000 per 10 grams in 2024.

This sharp rise has created a strong positive wealth effect, with retail loans against gold also seeing a noticeable increase.

According to the report, 2025 turned out to be a year of consolidation for Indian equity markets, while alternative assets such as gold showed exceptional strength.

It said gold clearly stood out as a safe asset at a time when equities faced pressure.

India also underperformed global markets in 2025, leading to a decline in its share of global market capitalisation.

The Nifty underperformed global peers and emerging markets by around 25 per cent, marking its worst relative performance in nearly three decades.

This correction has brought India's valuation premium closer to its long-term average.

Globally, gold, emerging markets, Europe and the so-called "Magnificent 7" stocks were among the top performers in 2025.

In contrast, oil, the US dollar and Bitcoin were among the worst-performing assets during the year.

The report noted that after several years of strong gains, small- and mid-cap stocks underperformed large-cap stocks in 2025.

While valuations have cooled across market segments, large-cap stocks continue to offer better value.

It also pointed out that nearly 30 per cent of small-cap stocks are down 30 per cent or more from their 52-week highs.

In its investment advice, HDFC Mutual Fund said first-time investors may consider hybrid funds to reduce portfolio volatility.

Such funds allow investors to benefit from a mix of equity, debt and gold, offering better balance during uncertain market conditions.

- IANS

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Reader Comments

R
Rohit P
Rs 117 lakh crore sounds huge, but is this wealth actually accessible to most families? If it's locked in jewellery, you can't easily spend it. The rise in gold loans shows people are using it as collateral, not selling. The "wealth effect" might be overstated for daily life.
A
Arjun K
Good to see gold performing, but the underperformance of Indian equity markets is worrying. Nifty lagging by 25% is a big red flag. Maybe it's time to rebalance and follow the fund's advice on hybrid funds. Can't put all eggs in one basket.
S
Sarah B
As an NRI, this is fascinating. It reinforces the idea that Indian household balance sheets are resilient. The shift from small/mid caps to large caps and gold makes sense in a volatile global year. Hybrid funds sound like a sensible approach for new investors.
V
Vikram M
So gold up Rs 57,000 in a year! Amazing. But now is it the right time to buy more, or is a correction due? This kind of rally can't last forever. Also, with Bitcoin among worst performers, maybe traditional assets are back in favour.
M
Meera T
This wealth is not evenly distributed. Many families, especially in rural areas, have gold but are still struggling with high food prices and costs. Paper wealth doesn't put food on the table. The report should also look at debt levels.

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